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Mnagagwa's son and Mrs Tagwirei added to US sanctions list
12 Dec 2022 at 22:40hrs | Views
WASHINGTON - Today, the U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) designated four Zimbabwean individuals and two Zimbabwean entities, and removed seventeen Zimbabweans from the Specially Designated Nationals and Blocked Persons List (SDN List).
The Zimbabwe sanctions program targets human rights abusers and those who undermine democratic processes or facilitate corruption. U.S. sanctions do not target the Zimbabwean people, the country of Zimbabwe, or Zimbabwe's banking sector.
"We urge the Zimbabwean government to take meaningful steps towards creating a peaceful, prosperous, and politically vibrant Zimbabwe, and to address the root causes of many of Zimbabwe's ills: corrupt elites and their abuse of the country's institutions for their personal benefit," said Under Secretary of the Treasury Brian E. Nelson. "The goal of sanctions is behavior change. Today's actions demonstrate our support for a transparent and prosperous Zimbabwe."
Today, OFAC designated Sandra Mpunga, Nqobile Magwizi, Fossil Agro, Fossil Contracting, and Obey Chimuka, for their ties to the previously designated individual Kudakwashe Tagwirei and his company, Sakunda Holdings. OFAC designated Tagwirei in August 2020 for having materially assisted, sponsored, or provided financial, material, logistical, or technical support for, or goods or services in support of, the Government of Zimbabwe; and Sakunda for being owned or controlled by Tagwirei. Tagwirei has utilized his relationships with high-level Zimbabwean officials to gain state contracts and receive favored access to hard currency, including U.S. dollars. In turn, Tagwirei has provided high priced items, such as expensive cars, to senior-level Zimbabwean government officials. Since former Zimbabwe President Robert Mugabe's 2017 departure, Tagwirei used a combination of opaque business dealings and his ongoing relationship with President Mnangagwa to grow his business empire dramatically and rake in millions of U.S. dollars.
OFAC is also designating Emmerson Mnangagwa, Jr., the son of President Mnangagwa of Zimbabwe.
Sandra Mpunga is Tagwirei's wife. Together they created Sakunda, which is a neologism of Sandra and Tagwirei's abbreviated first name, "Kuda". Mpunga has served as the executive director of Sakunda and together with Tagwirei is the sole beneficial owner of the company. Mpunga was designated pursuant to E.O. 13469 for being the spouse of Tagwirei.
Magwizi has served as the chief marketing and public relations officer of Sakunda as well as Mpunga's executive assistant. In the spring of 2022, Magwizi was serving as a project coordinator for Sakunda. Nqobile Magwizi was designated pursuant to E.O. 13469 for acting for or behalf of Sakunda.
Fossil Agro has supplied the Government of Zimbabwe's Command Agriculture Program, a state farm subsidy largely financed by Sakunda which has failed to account for billions of dollars in disbursements. The Government of Zimbabwe awarded Fossil Contracting nearly $40 million in contracts in 2021. Fossil Agro and Fossil Contracting were designated pursuant to E.O. 13469 for providing material, logistical, or technical support to the Government of Zimbabwe.
Chimuka owns Fossil Contracting and is also its director and is the CEO and director of Fossil Agro. Chimuka is a longtime business partner of Tagwirei and is considered part of Tagwirei's inner circle. Chimuka also sits on the board and serves as director of several of Tagwirei's companies. Obey Chimuka was designated pursuant to E.O. 13469 for acting for or on behalf of Fossil Agro, Fossil Contracting, and Tagwirei.
Emmerson Mnangagwa, Jr. is President Mnangagwa's son and has been in charge of the president's business interests related to Tagwirei. Mnangagwa, Jr. was designated pursuant to E.O. 13391 for being an immediate family member of the Zimbabwean president and OFAC-blocked Emmerson Mnangagwa.
Additionally, OFAC has determined that the seventeen individuals being removed from the SDN list no longer undermine Zimbabwe's democratic processes and institutions or meet any of the other criteria for designation under OFAC's Zimbabwe sanctions program. Each year, the U.S. Government removes hundreds of individuals and entities from the SDN List. Each removal is based on a thorough review in order to maintain the integrity of U.S. sanctions.
SANCTIONS IMPLICATIONS
As a result of today's designations, all property and interests in property of the designated persons located in the United States or in the possession or control of U.S. persons are blocked and must be reported to OFAC. In addition, any entities that are owned, directly or indirectly, 50 percent or more in the aggregate by one or more of such persons are also blocked. All transactions by U.S. persons or within (or transiting) the United States that involve any property or interests in property of blocked or designated persons are prohibited, unless authorized by a general or specific license issued by OFAC, or otherwise exempt. These prohibitions include the making of any contribution or provision of funds, goods, or services by, to, or for the benefit of any blocked person and the receipt of any contribution or provision of funds, goods, or services from any such person.
The power and integrity of OFAC sanctions derive not only from the ability to designate and add persons to the SDN List, but also the willingness to remove persons from the SDN List consistent with the law. The ultimate goal of sanctions is not to punish, but to bring about a positive change in behavior. For information concerning the process for seeking removal from an OFAC list, including the SDN List, please refer to OFAC's Frequently Asked Question 897. For detailed information on the process to submit a request for removal from an OFAC sanctions list.
View identifying information on the individuals and entities designated and delisted today.
The Zimbabwe sanctions program targets human rights abusers and those who undermine democratic processes or facilitate corruption. U.S. sanctions do not target the Zimbabwean people, the country of Zimbabwe, or Zimbabwe's banking sector.
"We urge the Zimbabwean government to take meaningful steps towards creating a peaceful, prosperous, and politically vibrant Zimbabwe, and to address the root causes of many of Zimbabwe's ills: corrupt elites and their abuse of the country's institutions for their personal benefit," said Under Secretary of the Treasury Brian E. Nelson. "The goal of sanctions is behavior change. Today's actions demonstrate our support for a transparent and prosperous Zimbabwe."
Today, OFAC designated Sandra Mpunga, Nqobile Magwizi, Fossil Agro, Fossil Contracting, and Obey Chimuka, for their ties to the previously designated individual Kudakwashe Tagwirei and his company, Sakunda Holdings. OFAC designated Tagwirei in August 2020 for having materially assisted, sponsored, or provided financial, material, logistical, or technical support for, or goods or services in support of, the Government of Zimbabwe; and Sakunda for being owned or controlled by Tagwirei. Tagwirei has utilized his relationships with high-level Zimbabwean officials to gain state contracts and receive favored access to hard currency, including U.S. dollars. In turn, Tagwirei has provided high priced items, such as expensive cars, to senior-level Zimbabwean government officials. Since former Zimbabwe President Robert Mugabe's 2017 departure, Tagwirei used a combination of opaque business dealings and his ongoing relationship with President Mnangagwa to grow his business empire dramatically and rake in millions of U.S. dollars.
OFAC is also designating Emmerson Mnangagwa, Jr., the son of President Mnangagwa of Zimbabwe.
Sandra Mpunga is Tagwirei's wife. Together they created Sakunda, which is a neologism of Sandra and Tagwirei's abbreviated first name, "Kuda". Mpunga has served as the executive director of Sakunda and together with Tagwirei is the sole beneficial owner of the company. Mpunga was designated pursuant to E.O. 13469 for being the spouse of Tagwirei.
Magwizi has served as the chief marketing and public relations officer of Sakunda as well as Mpunga's executive assistant. In the spring of 2022, Magwizi was serving as a project coordinator for Sakunda. Nqobile Magwizi was designated pursuant to E.O. 13469 for acting for or behalf of Sakunda.
Fossil Agro has supplied the Government of Zimbabwe's Command Agriculture Program, a state farm subsidy largely financed by Sakunda which has failed to account for billions of dollars in disbursements. The Government of Zimbabwe awarded Fossil Contracting nearly $40 million in contracts in 2021. Fossil Agro and Fossil Contracting were designated pursuant to E.O. 13469 for providing material, logistical, or technical support to the Government of Zimbabwe.
Chimuka owns Fossil Contracting and is also its director and is the CEO and director of Fossil Agro. Chimuka is a longtime business partner of Tagwirei and is considered part of Tagwirei's inner circle. Chimuka also sits on the board and serves as director of several of Tagwirei's companies. Obey Chimuka was designated pursuant to E.O. 13469 for acting for or on behalf of Fossil Agro, Fossil Contracting, and Tagwirei.
Emmerson Mnangagwa, Jr. is President Mnangagwa's son and has been in charge of the president's business interests related to Tagwirei. Mnangagwa, Jr. was designated pursuant to E.O. 13391 for being an immediate family member of the Zimbabwean president and OFAC-blocked Emmerson Mnangagwa.
Additionally, OFAC has determined that the seventeen individuals being removed from the SDN list no longer undermine Zimbabwe's democratic processes and institutions or meet any of the other criteria for designation under OFAC's Zimbabwe sanctions program. Each year, the U.S. Government removes hundreds of individuals and entities from the SDN List. Each removal is based on a thorough review in order to maintain the integrity of U.S. sanctions.
SANCTIONS IMPLICATIONS
As a result of today's designations, all property and interests in property of the designated persons located in the United States or in the possession or control of U.S. persons are blocked and must be reported to OFAC. In addition, any entities that are owned, directly or indirectly, 50 percent or more in the aggregate by one or more of such persons are also blocked. All transactions by U.S. persons or within (or transiting) the United States that involve any property or interests in property of blocked or designated persons are prohibited, unless authorized by a general or specific license issued by OFAC, or otherwise exempt. These prohibitions include the making of any contribution or provision of funds, goods, or services by, to, or for the benefit of any blocked person and the receipt of any contribution or provision of funds, goods, or services from any such person.
The power and integrity of OFAC sanctions derive not only from the ability to designate and add persons to the SDN List, but also the willingness to remove persons from the SDN List consistent with the law. The ultimate goal of sanctions is not to punish, but to bring about a positive change in behavior. For information concerning the process for seeking removal from an OFAC list, including the SDN List, please refer to OFAC's Frequently Asked Question 897. For detailed information on the process to submit a request for removal from an OFAC sanctions list.
View identifying information on the individuals and entities designated and delisted today.
Source - U.S. Department of the Treasury
